ISLAMABAD: In a country where 2,050 people were killed last year in more than 1,500 bombings and terror attacks, few people would dare describe Pakistan’s struggle against a dizzying array of militant groups, separatist insurgents and powerful crime syndicates as a roaring success.

Yet its colourful interior minister, a man described by one commentator as Pakistan’s answer to London’s mayor Boris Johnson – a hugely famous politician who not everyone takes seriously – does just that.

“We have given a good beating to the terrorist,” Rehman Malik, 61, told the Guardian in December. “We have been able to break their back, we are in a position now to fight, to fight and fight.”

It is the sort of statement his detractors say blithely ignores reality, but that has also helped turn the career bureaucrat into one of the country’s best known politicians.

Whether or not the public believes domestic security has improved will be a key issue as the Pakistan People’s party (PPP) prepares to face the electorate in a few months’ time.

Critics say the government’s poor record on basic competence issues is epitomised by Malik, who many feel owes his position more to his usefulness as a master of political dealing rather than any great ability to administer internal security.

For many Pakistanis the interior minister, with his designer ties and purple-hued hair, is the face of the government: he is the only senior member of the bloated federal cabinet to have remained in post for the entire time the PPP has been in power, eclipsing even the prime minister.

He has found fame through his almost daily television appearances, usually made at the scene of the sort of catastrophic attacks that would end the career of a home secretary.

Everyone has a favourite Malik moment. For some it was when he said a spate of sectarian murders in Karachi was the handiwork of angry wives and girlfriends. Or there was the press conference in 2011 when he revealed to a country still reeling from a brazen Taliban attack on an important naval base in Karachi that the militant assault squad were “wearing black clothes like in Star Wars movies”.

An important trip to India in December produced a crop of gaffes that prompted fury in the Indian media. “The best thing would be to put Scotch Tape on his mouth to stop him talking,” said one former Pakistani diplomat, who claims to be a long-standing friend of the minister.

“Malik has his own irrepressible style of expressing himself, which may not be one of the most sophisticated in the world, but I think serious, sober Indians understood that.”

EMBARRASSMENT OR TREASURE: Malik’s status at home – somewhere between national embarrassment and national treasure – seems secure, however. “People love him,” said Murtaza Chaudhry, producer and host of the news comedy show Banana News Network (BNN) in which an actor playing Malik regularly lampoons the minister. “He is by far the most favourite character with the viewers.”

Recently his character was shown proudly presenting a flimsy construction of cupboard boxes that he boasted was of his own design, cost “only $60,000” and could protect the public from explosions.

Malik, who seems to relish the limelight, says he enjoys watching the comedy shows. He says there is no point complaining, or challenging reports of his many famous statements, which he says are always “twisted” by the media.

However, Chaudhry said that BNN had received a 10-page letter from Malik’s lawyer objecting to the mockery.

Malik’s defenders say he is much more capable and intelligent than his public personality suggests. “To some extent it’s just a ploy to disarm everyone,” said Mehmal Sarfraz, a Lahore-based journalist who credits the minister with successfully countering some threats in areas where civilian rulers have influence (many Pakistanis believe only the country’s powerful military has the ability to tackle militancy).

“Half the time he doesn’t believe what he is saying is true, he’s just saying what he thinks the public wants to hear.”

But critics find the buffoonery far from amusing. “He makes these statements which never make any sense, so no one can take him seriously,” said Aftab Sherpao, a former interior minister who was once a leading PPP figure. “When he gets up in parliament people just mock him – they laugh and jeer him.”

One analyst suggests the mayor of London, Boris Johnson, is the nearest equivalent politician in the West because he is “kind of goofy, kind of silly but people like him”.Malik thinks he is more of a Mandelson, a Churchill, or a Miliband (“the one who was British secretary of state, not the present one”). “But I would not want to be compared to any of these people,” he said after reeling off more names, including a US president. “I consider myself a worker, a party worker – that is all.”

Despite his protestations of humbleness, the elected senator has achieved a remarkable, and to many perplexing, level of power in government. Neither a lifelong politician nor a member of the landed gentry, he rose from within the bureaucracy despite being what one commentator called a “lower-middle class outsider”.

His break came in the 1990s when he was spotted by Benazir Bhutto. At the time she was PPP leader and in her second term as prime minister and he was an official at the Federal Investigation Agency.

POLITICAL FIXER: He made himself an indispensable political fixer, particularly when Bhutto was living in exile in London in the late 1990s (until recently Malik was a British citizen and still has family and major business interests in the UK).

His influence over President Asif Ali Zardari is less clear. Some believe Malik has potentially damaging information about the business activities of a couple who have faced a number of overseas legal cases and investigations into major corruption allegations.

Cynics say his job is not to grapple with crime and terrorism, or reform the country’s dysfunctional interior ministry, but to help Zardari do whatever it takes to hold together his fragile governing coalition.

Malik is regularly dispatched to Karachi to smooth things over with the Muttahida Qaumi Movement whenever the party flexes its muscles.

On Jan 2 he even shuttled to London for a last-minute meeting with Muttahida supremo Altaf Hussain after he announced his party would participate in the anti-corruption protests in Islamabad orchestrated by Tahir-ul-Qadri. “As far as Altaf Hussain is concerned, Malik is just an errand boy,” said Aftab Sherpao.

Nonetheless, it will be on domestic security – as well as the dire state of Pakistan’s economy – on which the public are likely to make their judgment in the coming months.

According to the Pakistan Institute for Peace Studies, the level of violence has dropped since the government came to power in 2008. But the past few weeks have seen an attack on a major airport, the assassination of leading politicians, and the kidnapping by the Taliban of 23 tribal policemen – 21 of whom were lined up on a cricket pitch and killed.

Although sectarian attacks remain a huge problem, claiming 537 lives last year and injuring many more, Rehman Malik takes credit for “creating harmony between Sunnis and Shias”.

“In my five years there is hardly killing, mass killing, of Sunnis and Shias,” he said, weeks before two dreadful mass-casualty attacks on Hazara Shias in Quetta this year that claimed almost 200 lives. He says his strategy of “psy-war” – making sure the security forces have “a good backing and personal patting” – is paying off.

“It is important because your people are demoralised in war, you have to give them hope,” he said. “Wherever there is someone killed you must have seen I’m going to the field, in minutes I am there on the scene, supervising the whole situation.”

He has upset people with his enthusiasm for shutting mobile phone networks in major cities at short notice in an attempt to thwart terror plots; although the tactic seems to work.

In September he pushed for a national “Love of the Holy Prophet” day in response to public anger over a crude YouTube video that mocked Islam. What was meant to be a peaceful day of protest was taken as a state-sponsored opportunity for deadly rioting by religious extremists.

One diplomat, who was on “lockdown” as teargas drifted across the embassy walls from pitched battles between demonstrators and police outside Islamabad’s embassy quarter, recalls being phoned by a delighted Malik reporting how well he thought it was all going.

“I let them protest, but from a certain point I will not let them go further,” Malik said. “I ordered the [teargas] shelling. Had I not been there they had full programme to barge in [to the diplomatic enclave].”

BNN is working on a special series dedicated just to Malik, who will appear as a caped superhero. In Chaudhry’s favourite scene, Malik will be seen rushing into a burning building – but only to rescue a dog.

In the background people throw themselves from windows to escape the inferno as Malik delivers his catchphrase to the waiting TV crews: “Everything is under control.”

By arrangement with the Guardian

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Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

Raymond Baker in his book Capitalism’s Achilles Heel: Dirty Money and How to Renew the Free-Market System tried to understand the dynamics of how dirty money works.

Corruption and criminality run from the top down, with the political class constantly looting the national treasury and distorting economic policy for personal gain. Bank loans are granted largely on the basis of status and connections. The rich stash much of their money abroad in those willing western coffers, while exhibiting little inclination to repay their rupee borrowings. Pakistan’s recent history has been dominated by two families—the Bhuttos and the Sharifs—both merely tolerated by the military, the real power in the country. When it comes to economic destruction, there’s not a lot of difference among the three.

Pages 82-85 of the book cover the section on Nawaz Sharif: While Benazir Bhutto hated the generals for executing her father, Nawaz Sharif early on figured out that they held the real power in Pakistan. His father had established a foundry in 1939 and, together with six brothers, had struggled for years only to see their business nationalized by Ali Bhutto’s regime in 1972. This sealed decades of enmity between the Bhuttos and the Sharifs. Following the military coup and General Zia’s assumption of power, the business—Ittefaq—was returned to family hands in 1980.Nawaz Sharif became a director and cultivated relations with senior military officers. This led to his appointment as finance minister of Punjab and then election as chief minister of this most populous province in 1985. During the 1980s and early 1990s, given Sharif ’s political control of Punjab and eventual prime ministership of the country, Ittefaq Industries grew from its original single foundry into 30 businesses producing steel, sugar, paper, and textiles, with combined revenues of $400 million, making it one of the biggest private conglomerates in the nation. As in many other countries, when you control the political realm, you can get anything you want in the economic realm.With Lahore, the capital of Punjab, serving as the seat of the family’s power, one of the first things Sharif did upon becoming prime minister in 1990 was build his long-dreamed-of superhighway from there to the capital,Islamabad. Estimated to cost 8.5 billion rupees, the project went through two biddings. Daewoo of Korea, strengthening its proposals with midnight meetings, was the highest bidder both times, so obviously it won the contract and delivered the job at well over 20 billion rupees.

A new highway needs new cars. Sharif authorized importation of 50,000 vehicles duty free, reportedly costing the government $700 million in lost customs duties. Banks were forced to make loans for vehicle purchases to would-be taxi cab drivers upon receipt of a 10 percent deposit.Borrowers got their “Nawaz Sharif cabs,” and some 60 percent of them promptly defaulted. This left the banks with $500 million or so in unpaid loans. Vehicle dealers reportedly made a killing and expressed their appreciation in expected ways. Under Sharif, unpaid bank loans and massive tax evasion remained the favorite ways to get rich. Upon his loss of power the usurping government published a list of 322 of the largest loan defaulters, representing almost $3 billion out of $4 billion owed to banks. Sharif and his family were tagged for $60 million. The Ittefaq Group went bankrupt in 1993 when Sharif lost his premiership the first time. By then only three units in the group were operational, and loan defaults of the remaining companies totaled some 5.7 billion rupees, more than $100 million.

Like Bhutto, offshore companies have been linked to Sharif, three in the British Virgin Islands by the names of Nescoll, Nielson, and Shamrock and another in the Channel Islands known as Chandron Jersey Pvt. Ltd. Some of these entities allegedly were used to facilitate purchase of four rather grand flats on Park Lane in London, at various times occupied by Sharif family members. Reportedly, payment transfers were made to Banque Paribas en Suisse, which then instructed Sharif ’s offshore companies Nescoll and Nielson to purchase the four luxury suites.

In her second term, Benazir Bhutto had Pakistan’s Federal Investigating Agency begin a probe into the financial affairs of Nawaz Sharif and his family. The probe was headed by Rehman Malik, deputy director general of the agency. Malik had fortified his reputation earlier by aiding in the arrest of Ramzi Yousef, mastermind of the 1993 World Trade Center bombing. During Sharif ’s second term, the draft report of the investigation was suppressed, Malik was jailed for a year, and later reportedly survived an assassination attempt, after which he fled to London. The Malik report, five years in the making, was released in 1998, with explosive revelations:The records, including government documents, signed affidavits from Pakistani officials, bank files and property records, detail deals that Mr. Malik says benefited Mr. Sharif, his family and his political associates:

At least $160 million pocketed from a contract to build a highway from Lahore, his home town, to Islamabad, the nation’s capital.At least $140 million in unsecured loans from Pakistan’s state banks.More than $60 million generated from government rebates on sugar exported by millscontrolled by Mr. Sharif and his business associates.At least $58 million skimmed from inflated prices paid for imported wheat from the United States and Canada. In the wheat deal, Mr. Sharif ’s government paid prices far above market value to a private company owned by a close associate of his in Washington, the records show. Falsely inflated invoices for the wheat generated tens of millions of dollars in cash.The report went on to state that “The extent and magnitude of this corruption is so staggering that it has put the very integrity of the country at stake.” In an interview, Malik added: “No other leader of Pakistan has taken that much money from the banks. There is no rule of law in Pakistan. It doesn’t exist.”

What brought Sharif down in his second term was his attempt to acquire virtually dictatorial powers. In 1997 he rammed a bill through his compliant parliament requiring legislators to vote as their party leaders directed. In 1998 he introduced a bill to impose Sharia law (Muslim religious law) across Pakistan, with himself empowered to issue unilateral directives in the name of Islam. In 1999 he sought to sideline the army by replacing Chief of Staff Pervez Musharraf with a more pliable crony. He forgot the lessons he had learned in the 1980s: The army controls Pakistan and politicians are a nuisance. As Musharraf was returning from Sri Lanka, Sharif tried to sack him in midair and deny the Pakistan International Airways flight with 200 civilians on board landing rights in Karachi. Musharraf radioed from the aircraft through Dubai to his commander in Karachi, ordering him to seize the airport control tower, accomplished as the plane descended almost out of fuel. Musharraf turned the tables and completed his coup, and Sharif was jailed.

But Sharif had little to fear. This, after all, is Pakistan. Musharraf needed to consolidate his power with the generals, and Sharif knew details about the corruption of most of the brass. Obviously, it is better to tread lightly around the edges of your peer group’s own thievery. So Musharraf had Sharif probed, tried, convicted, and sentenced to life in prison, but then in 2000 exiled him to Saudi Arabia.Twenty-two containers of carpets and furniture followed, and, of course, his foreign accounts remained mostly intact. Ensconced in a glittering palace in Jeddah, he is described as looking “corpulent” amidst “opulent” surroundings. Reportedly, he and Benazir Bhutto even have an occasional telephone conversation, perhaps together lamenting how unfair life has become.

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

Asif Ali Zardari is one of Pakistan's most controversial political figures who has survived a series of personal and political setbacks to gain the presidency.

Since taking the helm in September 2008, Mr Zardari has presided over an increasingly fragile country, a growing militant threat, a turbulent relationship with the US, declining relations with the military, nationwide flooding, and possible economic meltdown.

In May 2011 he had to cope with the fall-out in Pakistan of the killing by US special forces of al-Qaeda leader Osama Bin Laden in the town of Abbottabad.

Recriminations over the killings reflected the traditionally poor relations between his Pakistan People's Party (PPP) and the army as well as tenser relations with Washington, already strained because of continued US drone strikes against militant targets in the north-west of his country.

Continue reading the main story“Start Quote

Despite his failings, he always stood by his family no matter what”

Benazir BhuttoTalking about her husband Asif Ali Zardari in 2004Mr Zardari did not use the fall-out from Bin Laden's death to introduce changes to the military, although correspondents say he is known to be uneasy about the role it and Pakistan's intelligence service play in the governance of the country.

During his period in power, Pakistan has been hit by numerous suicide bombings - some directed against military and political targets and some more sectarian in nature.

Among the many opponents ranged against him are some of the country's most popular politicians, including former PM Nawaz Sharif and more recently former cricketer and Movement for Justice party leader Imran Khan.

Both have been critical of president Zardari's support for the US and Nato in the battle against Taliban militants in Afghanistan.

Controversial memoMr Zardari's mercurial career has taken many a dramatic turn since his marriage in December 1987 to the charismatic former Prime Minister Benazir Bhutto.

Mr Zardari is accused of abandoning his country on a trip to Europe at the height of flooding in 2010He was thrust into the centre of politics when Ms Bhutto was assassinated 20 years later.

Since then and now his career has veered from being imprisoned for corruption - complaining that he was tortured when behind bars - to taking the country's top job by leading the PPP to victory in general elections.

Perhaps the high point of his political life came in 2008 when he played a pivotal role with former political enemies to force President Pervez Musharraf to resign.

But he has also been the subject of unfavourable scrutiny and in 2010 he was widely criticised for visiting Europe at the height of some of the worst floods to hit Pakistan in recent years.

He has also been forced to concede some of his presidential powers to the judiciary and to Prime Minister Yousuf Raza Gilani.

In November 2011 he was dealt another blow by the resignation of Pakistan's ambassador to the US, Husain Haqqani.

Both Mr Haqqani and the president were accused of drafting a controversial memo in which they allegedly sought US military help against a possible military coup in Pakistan. They deny the charges.

Prison sentencesBut his political struggles today are still a far cry from the period before Ms Bhutto's death, when Mr Zardari's public image was so bad that the PPP kept him out of the public eye as much as possible during the campaigning for national elections in February 2008.

Mr Zardari claimed that he was tortured while in prison in 1999Mr Zardari was seen then as a political liability.

He spent several years in jail on charges of corruption. He was labelled "Mr 10%".

He found himself in major trouble in 1990 when he was accused, among other things, of tying a remote-controlled bomb to the leg of a businessman and sending him into a bank to withdraw money from his account as a pay-off.

Those charges were never proved. The PPP had then accused the country's powerful intelligence apparatus of maligning Mr Zardari to damage Ms Bhutto's image.

In 1993, when then President Ghulam Ishaq Khan sacked the government of Prime Minister Nawaz Sharif, Mr Zardari was escorted from the prison straight to the presidency where he was sworn in as a minister in the interim government.

Later, when the PPP won the 1993 elections, Mr Zardari moved with his wife to the Prime Minister's House in Islamabad where he lived for the next three years.

In 1996, when another president sacked the PPP government, he was arrested and charged with a number of offences including the murder of Mir Murtaza Bhutto, his wife's brother.

He was later charged, along with his wife, and convicted in a kickbacks scam involving a Swiss company, SGS.

But a mistrial was declared by Pakistan's Supreme Court following a major scandal involving the accountability bureau and the judge who had issued the verdict.

His last prison sentence lasted eight years until 2004, during which time he says he was tortured.

It ended as the then General Musharraf was engaged in protracted negotiations with Benazir Bhutto, then in self-imposed exile, for some form of political reconciliation.

'Personal bravery'Mr Zardari resolutely stood by his party as well as his wife - although at times he disagreed with the politics of both.

Benazir Bhutto's death propelled Mr Zardari on to centre stageHis friends say this was entirely in character and that no-one can deny his personal courage.

A close friend recounts an incident in the 1980s when as a horse-riding bachelor he personally rescued the daughter of a German diplomat who had fallen into a bog with her horse.

Asif Ali Zardari was born in Karachi to Hakim Ali Zardari, head of one of the "lesser" Sindhi tribes, who chose the urban life over rustic surroundings.

He grew up in Karachi and was educated at St Patrick's School - also the alma mater of Pervez Musharraf.

The young Zardari's main claim to fame was that he had a private disco at home, helping him gain the reputation as a "playboy".

After his release from prison in 2004, Mr Zardari kept a low profile, undergoing medical treatment in the US.

In addition to his heart problems he is reported to suffer from diabetes and a spinal ailment - which sometimes prevent him from easily moving around.

Ms Bhutto appreciated her husband's loyalty, saying that "despite his failings, he always stood by his family no matter what".

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

Most observers predicted that Raja Pervez Ashraf's term as Pakistan's prime minister would be a troubled one when he replaced Yousuf Raza Gilani in June 2012.

His task was to lead the ruling Pakistan People's Party (PPP) into general elections, now due in May, at a time when the civilian government, the judiciary and the powerful military were at loggerheads.

Before then he faces a court battle over corruption charges after a warrant for his arrest was issued on 15 January.

Like many Pakistani politicians Mr Ashraf is dogged by allegations of corruption, which is endemic in the country.

Critics call him "Raja Rental" because of the kickbacks he is alleged to have taken while water and power minister, a post he left in 2011. He denies the claims.

Political familyMr Ashraf is a senior figure in the party and has twice been a minister in the PPP-led government, which has been in power since 2008.

He comes from the town of Gujjar Khan, about an hour's drive from the capital, Islamabad.

But his parents owned agricultural land in the town of Sanghar in the southern province of Sindh, where he was born in 1950. He graduated from Sindh University in 1970.

He speaks fluent Sindhi, considering himself half Sindhi, and has gelled well with the predominantly Sindhi leadership of the PPP.

Continue reading the main storyRaja Pervez Ashraf

Born in 1950, Raja Pervez Ashraf comes from a land-owning political family with strong connections to Sindh provinceHe has been active in national politics since 1988 but lost repeated parliamentary elections until the 2002 and 2008 pollsSince 2008 he has served as both water and power minister and information technology ministerBut his time as water and power minister was dogged by power cuts and controversy over a power generation schemeHe denies charges of kickbacks but investigations are ongoingHe comes from a political family. One of his uncles served as a minister in the cabinet of military ruler, Ayub Khan, in the 1960s.

After completing his education, Mr Ashraf moved back to Gujjar Khan and tried to set up a shoe factory with his brothers. The business did not do well, and he shifted to property and that business is said to have flourished.

He has been active in national politics since 1988, and has acted as an important contact point for the PPP leadership in the Rawalpindi region, where Gujjar Khan is located.

He contested but lost parliamentary elections in 1990, 1993 and 1997, but won in 2002 and 2008.

In 2008, he was sworn in as water and power minister in the cabinet of Mr Gilani.

He presided over controversial deals under the Rental Power Projects (RPP) scheme, which was aimed at boosting electricity generation at a time when power cuts were becoming frequent.

His repeated promises to end power shortages remained unfulfilled, and were made the butt of jokes in the Pakistani media.

Subsequently, charges of kickbacks were brought against him and others in the RPP deals. He denies those charges, although an investigation by the National Accountability (NAB) is still continuing.

Die-hard loyalist?Due to all the negative publicity he attracted, he was dropped from the cabinet in a reshuffle in February 2011, although he returned some months later as minister for information technology.

After his nomination as the next prime minister became apparent, the country's largest English language daily, Dawn, referred to him in a banner headline as "Rental Raja", a reference to his apparent failures as the power minister.

But the investigation into the power projects has not been his only challenge as prime minister.

The Supreme Court has been pressing the government to ask the Swiss authorities to reopen a corruption case against President Asif Zardari.

It was Mr Gilani's failure to abide by the court's wishes that led to his disqualification.

Mr Ashraf's government chose to comply with the court order and wrote to the Swiss authorities in November, withdrawing a 2007 request for investigations into Mr Zardari to be halted. But it remains unclear whether the case against Mr Zardari will be reopened by Switzerland.

Mr Ashraf may have given ground in that battle, and how he responds to the arrest order remains to be seen - but he is likely to put up a fight.

Correspondents say the general belief is that President Zardari would never choose a person for the top government slot who was not a die-hard PPP loyalist.

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

Mr Gilani has a reputation for anti-establishment politics and leadership

Pakistan's Prime Minister Yousuf Raza Gilani has proved himself to be a wily and resilient political operator who up until June 2012 had persistently defied his critics and the might of the judiciary to cling onto his job.

But it appears that defiance has finally came to an end with his shock disqualification from office by Pakistan's Supreme Court.

Its announcement came two months after it convicted the premier of contempt because of his refusal to ask Swiss authorities to reopen corruption cases against President Asif Ali Zardari.

Mr Gilani's strategy of not appealing against his conviction so as not to antagonise the court appears to have failed.

His determination to stand up for himself helped Mr Gilani grow in stature in the eyes of many Pakistanis.

He became the longest-serving prime minister in the history of Pakistan, where civilian governments have been repeatedly overthrown by the powerful military, often with the support of the Supreme Court.

When he was appointed to the job in March 2008 many commentators did not expect his tenure would be long. But he repeatedly rose to the challenge and fended off his critics.

In April 2012, Mr Gilani seemed in a stronger position than at any point during his confrontation with the Supreme Court.

Although he was found guilty of contempt, the court gave him only a symbolic sentence and he did not have to serve any time in jail. The prime minister had argued that the president, who rejects the charges, had immunity as head of state.

In April, the court in effect backed down from its efforts to remove the elected prime minister, and its symbolic judgement and token sentence were seen as something of a personal victory for Mr Gilani - the judiciary, the army and the opposition had apparently failed in their efforts to remove him.

It is not clear whether Mr Gilani will now try to appeal against his disqualification. The ruling Pakistan People's Party should have the necessary majority in parliament to elect a new prime minister.

In spite of his conviction, Mr Gilani emerged from his trial with his reputation enhanced, having succeeded in portraying himself as a man defending democracy in the face of a politically motivated campaign against him and his government.

Throughout his time in office it was clear that whatever the criticisms levelled at him - from poor governance to corruption - no party wanted to be seen as the one to bring down yet another elected government in Pakistan.

Supporters said that his long period as PM reflected Mr Gilani's sound political judgement and staying power.

He refrained from followed the bidding of former President Pervez Musharraf, despite heavy pressure by his government to coerce him into joining many of his Pakistan People's Party (PPP) colleagues in switching sides.

Mr Gilani's refusal to do a deal with Mr Musharraf is much admired within his party.

He went to jail in 2001, serving five years following a conviction over illegal government appointments that were alleged to have taken place during his term as Speaker of parliament between 1993-96.

A tall, softly-spoken man with an air of authority, he has acquired a reputation for doing the right thing.

Political family

Mr Gilani grew stronger the longer he was in his jobYousuf Raza Gilani was born on 9 June 1952 in Karachi in the southern province of Sindh, but his family comes from Punjab.

The Gilanis are among the most prominent of landowners and spiritual leaders in the south of Punjab province. Their home town is the ancient city of Multan.

The family's prominence naturally led to its members vying for political power.

Mr Gilani's grandfather and great-uncles joined the All India Muslim League and were signatories of the 1940 Pakistan resolution. This was the declaration which eventually led to partition.

His father, Alamdar Hussain Gilani, served as a provincial minister in the 1950s.

Mr Gilani joined up in 1978 when he became a member of the Muslim League's central leadership.

This was soon after he completed his MA in journalism at the University of Punjab. His first term as a public servant was as a nominee of General Zia-ul-Haq.

The then Pakistan army chief had been the country's dictator since overthrowing elected Prime Minister Zulfiqar Ali Bhutto in a 1977 coup.

Mr Bhutto was executed in 1979, an act that forever soured the relationship between the army and the PPP.

FigureheadMr Gilani joined Mr Bhutto's PPP in 1988, months before Gen Zia's death brought an end to its political exile.

Observers say it is his loyalty and his disdain for politicking within the party that earned him the nomination for prime minister.

"[Mr Gilani] was perhaps the only man among the top leadership who did not badger Zardari for this or any other position," says one PPP insider. "This along with the fact of his proven loyalty, earned him the nod."

But it was his independent thinking that won him many admirers after taking over as the country's chief executive.

Correspondents say his first few months were uncomfortable, with many doubting whether he had the charisma and standing to lead the country.

This feeling was strengthened when Mr Zardari, the PPP chairman, was elected president.

It was felt Mr Zardari would now take a more hands-on approach to government - leaving Mr Gilani as little more than a figurehead.

That did not happen and Mr Gilani grew in stature as his term progressed.

He had to contend with some of the worst crises in Pakistan's history, including extensive flooding, rising Taliban militancy and deteriorating relations with the US after the killing of al-Qaeda leader Osama Bin Laden.

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

ISLAMABAD: A federal minister who once volunteered to ensure recovery of the entire electricity dues from defaulters has turned out to be one of the biggest defaulters and has not paid a single penny on this account over the past 56 months.

But unlike other domestic consumers who face disconnection if they do not pay their electricity bills on time, this gentleman who lives in the ‘Ministers’ Enclave’ continues to enjoy uninterrupted power supply.

According to electricity bills issued by the Islamabad Electric Supply Company (Iesco), Interior Minister Rehman Malik tops the list of federal ministers who have failed to clear their dues with amounting to Rs4.9 million. He has not paid his bills since moving to House 34 in the capital’s Ministers’ Enclave.

Till Feb 13 this year, arrears against his official residence stood at Rs4.75 million. His monthly bill for February alone is Rs153,788 which also is unpaid. The outstanding amount increased to Rs4.92 million which included a Rs12,000 late payment surcharge.

Under perks and privileges enjoyed by federal ministers and advisers, the federal government provides a monthly allowance of Rs24,000 and any excess has to be paid by the minister or adviser. But it appears that several ministers take the allowance but do not clear electricity bills.

Mr Malik’s average monthly bill for 56 months works out at about Rs89,000.

Therefore, it is not surprising that the total amount owned by government departments to distribution companies hovers around Rs170 billion.

On June 15, 2012, Mr Malik offered to a nine-member cabinet committee to give him an opportunity to recover all electricity arrears. “Leave it to me, I will sort them (discos) out and correct their system. I will ensure 100 per cent recovery and reduction in load shedding”, he had told the committee headed by then finance minister Hafeez Shaikh.

Perhaps the committee was aware of Mr Malik’s record and, therefore, did not accept his offer.

But Mr Malik is not the only minister among electricity bill defaulters. According to Iesco record, Bangalow-20, the residence of Haji Khuda Bakhsh, Minister for Narcotics Control, has not cleared electricity bills amounting to Rs1.07 million for 49 months.

Minister for Postal Services Umar Gorgeij who lives in House-33 has an outstanding amount of Rs1.96 million and he has not paid the bills for 38 months.

Sardar Bahadur Sher who lives in House-15 owes Rs677,357, but he has been making partial payments.

An amount of Rs587,259 is outstanding against the House No-30 where Mir Hazar Khan Bijrani lives, although he is making partial payments.

Dr Fahmida Mirza, the Speaker of National Assembly, has an outstanding amount of Rs381,266 against her residence No-28. She has not paid her bills for 13 months and made a partial payment of Rs69,227 in June last year.

An amount of Rs369,794 has been outstanding against Residence-19 of Deputy Speaker Faisal Karim Kundi for 13 months.

Minister Makhdoom Shahabuddin owes Rs271,726 to Iesco and has not made any payment for more than 22 months.

Babar Khan Ghouri of MQM, Syed Naveed Qamar and Dr Asim Hussain are among few ministers who regularly pay their bills.

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

ISLAMABAD: A federal minister who once volunteered to ensure recovery of the entire electricity dues from defaulters has turned out to be one of the biggest defaulters and has not paid a single penny on this account over the past 56 months.

But unlike other domestic consumers who face disconnection if they do not pay their electricity bills on time, this gentleman who lives in the ‘Ministers’ Enclave’ continues to enjoy uninterrupted power supply.

According to electricity bills issued by the Islamabad Electric Supply Company (Iesco), Interior Minister Rehman Malik tops the list of federal ministers who have failed to clear their dues with amounting to Rs4.9 million. He has not paid his bills since moving to House 34 in the capital’s Ministers’ Enclave.

Till Feb 13 this year, arrears against his official residence stood at Rs4.75 million. His monthly bill for February alone is Rs153,788 which also is unpaid. The outstanding amount increased to Rs4.92 million which included a Rs12,000 late payment surcharge.

Under perks and privileges enjoyed by federal ministers and advisers, the federal government provides a monthly allowance of Rs24,000 and any excess has to be paid by the minister or adviser. But it appears that several ministers take the allowance but do not clear electricity bills.

Mr Malik’s average monthly bill for 56 months works out at about Rs89,000.

Therefore, it is not surprising that the total amount owned by government departments to distribution companies hovers around Rs170 billion.

On June 15, 2012, Mr Malik offered to a nine-member cabinet committee to give him an opportunity to recover all electricity arrears. “Leave it to me, I will sort them (discos) out and correct their system. I will ensure 100 per cent recovery and reduction in load shedding”, he had told the committee headed by then finance minister Hafeez Shaikh.

Perhaps the committee was aware of Mr Malik’s record and, therefore, did not accept his offer.

But Mr Malik is not the only minister among electricity bill defaulters. According to Iesco record, Bangalow-20, the residence of Haji Khuda Bakhsh, Minister for Narcotics Control, has not cleared electricity bills amounting to Rs1.07 million for 49 months.

Minister for Postal Services Umar Gorgeij who lives in House-33 has an outstanding amount of Rs1.96 million and he has not paid the bills for 38 months.

Sardar Bahadur Sher who lives in House-15 owes Rs677,357, but he has been making partial payments.

An amount of Rs587,259 is outstanding against the House No-30 where Mir Hazar Khan Bijrani lives, although he is making partial payments.

Dr Fahmida Mirza, the Speaker of National Assembly, has an outstanding amount of Rs381,266 against her residence No-28. She has not paid her bills for 13 months and made a partial payment of Rs69,227 in June last year.

An amount of Rs369,794 has been outstanding against Residence-19 of Deputy Speaker Faisal Karim Kundi for 13 months.

Minister Makhdoom Shahabuddin owes Rs271,726 to Iesco and has not made any payment for more than 22 months.

Babar Khan Ghouri of MQM, Syed Naveed Qamar and Dr Asim Hussain are among few ministers who regularly pay their bills.

LOL! Just compare to Toronto Mayor who use the school bus for football team get fired .....

AJMER: A border dispute and shrine politics is threatening to make Pakistan PM Raja Pervez Ashraf's pilgrimage to Sufi saint Moinuddin Chishti's mausoleum bumpy. On Friday, a day before his visit, the shrine's spiritual head said he will boycott the visit to protest beheading of an Indian soldier along the LoC recently, while another group of 'khadims' (caretakers) said the shrine keepers have no business blocking any devotee beckoned by the Garib Nawaz.................http://timesofindia....ow/18871455.cms

* Regrets unending smear campaign against him and his family by certain vested interests

By Farooq Awan

ISLAMABAD: Prime Minister Raja Pervaiz Ashraf on Friday requested Chief Justice Iftikhar Muhammad Chaudhry to take back investigation against him in the rental power projects case from NAB and hand over it to a commission headed by Dr Shoaib Suddle, as the court had done in Arsalan Iftikhar case in the recent past.

In a letter to the chief justice, the prime minister regretted that a an unwarranted and unending smear campaign had been unleashed against him and his family by certain vested interests, which had compelled him to make this request.

Raja said he was writing this letter in his capacity both as a citizen of Pakistan and as prime minister.

Following is the text of the letter:

“I am writing to you in my capacity both as a citizen of Pakistan and as prime minister. Throughout my long political career, it has been my endeavour to maintain highest standards of integrity in public service. Yet, in recent years a totally unwarranted and unending smear campaign has been unleashed against me and my family by certain vested interests, which has compelled me to make this request to you.

It is inalienable right of every citizen that no action detrimental to his reputation is taken except in accordance with law, Under the Constitution, not only is dignity of every man inviolable, but all citizens are equal before law and entitled to equal protection of law (Including the law laid down by binding precedent).

Some time ago I appeared before the Honourable Supreme Court to demonstrate publicly that I was not above law. I believe I was duty-bound to assist the Honourable Court in arriving at a fair and just outcome of the proceedings. The Honourable Court passed judgment on 30-03-2012, directing NAB to investigate allegations of corruption arising out of the Rental Power Projects (RPPs) case and bring the culprits to justice.

When NAB opened an inquiry, I fully and whole-heartedly cooperated with the investigation team. I had nothing to hide. Nor had I ever acted while dealing with matters falling within my responsibilities except with total honesty and in good faith. The RPPs policy may not have turned out to be as robust and effective as its planners had expected it to be notwithstanding that it was carried out diligently and in good conscience. I acted in the manner I sincerely believed was in the best interest of Pakistan, in order solve the country’s chronic electricity shortage that was afflicting our people and badly damaging our economy.

With the NAB inquiry getting unduly prolonged and mired in all sorts of controversies, I feel hurt when my reputation and that of my family is continually tarnished by subjective perceptions that I was in any way instrumental in not letting NAB conduct its investigations in a dispassionate, objective and credible manner.

It is also extremely demeaning for the State particularly when I hold such a high office.

More recently, especially following the tragic death of NAB’s Investigation Officer Kamran Faisal, a lingering suspicion has been created that the Government is perhaps exerting undue pressure on NAB in the RPPs case in order to save influential people from possible prosecution. While I have been asking NAB to act fairly, evenly and justly in every case, as per its mandate, and while I will never allow the RPPs inquiry to be unduly interfered with, under any circumstances, I am conscious that no amount of effort on my part will suffice to change the negative image. Simultaneously, I am aware that the Honourable Supreme Court also has, at times, expressed doubts on the competence, fairness and professionalism of NAB.

In order to effectively deal with the allegation that the government is putting pressure on NAB to cause bias to a fair and independent outcome of RPPs inquiry, I consider it expedient that the case be taken away from NAB and given to an independent commission that enjoys confidence of both the Honourable Supreme Court, the public at large and even the parties involved. The Honourable Supreme Court adopted such a course in a recent sensitive case when a one-man commission was constituted under Dr Shoaib Suddle, Federal Tax Ombudsman. Honourable Supreme Court showed confidence in Dr Suddle and I also regard him as an officer with a proven record of competence and impeccable integrity. I believe that with his investigative background/experience he is the right person to independently and impartially examine this matter, without fear or favour.

I therefore request you to establish a Commission headed by Dr Suddle and consisting of any other member(s) the Honourable Supreme Court may like to appoint, to investigate this matter justly, fairly and professionally, and report within a specified timeframe.”

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

ISLAMABAD: The Election Commission of Pakistan on Thursday released details of assets declared by former parliamentarians, with former National Assembly member Noor Alam Khan being the richest lawmaker having declared assets worth Rs.320 million.

Jamshed Dasti takes the last place, having the least amount of assets, with only his salaried bank account.

According to the details issued by the ECP, former Prime Minister Raja Pervez Ashraf owns assets amounting to Rs.72 million. He owns two cars worth Rs.1.8 million. He will be receiving an additional Rs.8 million which he had loaned to his brother.

Former Chief Minister Punjab Shahbaz Sharif owns a car worth Rs.20 million gifted by a friend along with assets amounting to Rs.14 million.

Chaudhary Nisar Ali Khan of Pakistan Muslim League – Nawaz (PML-N) has Rs.8.3 million cash in his bank account. He owns a house in Rawalpindi and nine other apartments.

Awami National Party (ANP) chief Asfandyar Wali Khan has Rs.10 million worth of assets and 50 tolas of gold.

Arbab Alamgir has assets of Rs.200 million and an apartment in Dubai, worth Rs.40 million.

Chaudhary Pervez Elahi has Rs.64.1 cash in his bank account, Rs.8.9 worth of property and Rs.34.9 worth of investments.

PPP leader and Speaker National Assembly, Fehmida Mirza, has assets comprising of Rs.80 million and an apartment in Dubai worth Rs.15 million.

The election commission released audited assets details of the political parties. According to the details, the PML-N emerges as Pakistan’s richest party with declared assets worth more than Rs.80 million.

The PML-Quaid is the second richest with assets comprising of Rs.51.44 million, while the ANP takes the third position with declared assets worth Rs.20.73 million.

The net worth of the Pakistan People’s Party, the leading party in the outgoing National Assembly, was declared at Rs.4,35,000.

According to the ECP, the Muttahida Qaumi Movement (MQM) has assets worth Rs.9.46 whereas the net worth of the JI is Rs.1.85 million.

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

"There is none worthy of worship but He, glorified be He: [Far is He] above that which they associate [with Him]" (Qur'an 9:31)

Not equal are the owners of the fire and the owners of the Garden. The owners of the Garden, they are the victorious. [Quran 59:20]

Allah knows best [who are] your enemies. Allah is sufficient as a Friend, and Allah is sufficient as a Helper. [4:45]

Fudayl ibn Iyaad said: "Verily, if an action was done sincerely for the sake of Allah but was not correct, it will not be accepted by Allah. And if the action was correct but not done sincerely it will not be accepted until the act is sincere and correct. For it to be sincere, it has to be done for the sake of Allah, and in order for it to be correct, it has to agree to the sunnah."

the Messenger of Allah pbuh says; “whoever does not care about the affairs of the Muslims is not one of them.”

PESHAWAR: The Pakistan Muslim League-Nawaz (PML-N) has entered into an undeclared alliance with Pakistan Peoples Party (PPP) in two southern districts of Khyber-Pakhtunkhwa, posing a challenge for Jamiat Ulema-e-Islam-Fazal (JUI-F) in the upcoming polls.

According to sources, the parties have entered a seat adjustment agreement in Lakki Marwat and PPP provincial president Anwar Saifullah Khan is likely to stand as their joint candidate in Bannu for a National Assembly seat. The sources added the preliminary list of PPP and PML-N candidates had confirmed the ground situation in the two districts.

Anwar Saifullah is contesting for NA-26 Bannu and PK-74 Lakki Marwat along with Humayun Saifullah Khan from NA-27 Lakki Marwat and PK-75 Lakki Marwat. PML-N has named Salim Saifullah Khan as its candidate from NA-27 Lakki Marwat.

Sources claim Humayun Saifullah Khan will announce his withdrawal from the polls allowing his brother Salim Saifullah Khan, who will contest as an independent candidate, to take his place. Not contesting on a PML-N ticket will leave space for any further seat adjustment between the parties.

PPP has left open PK-76 Lakki Marwat, where PML-N has named Akhtar Munir as its candidate. In return, the PML-N has left open the national assembly seat of NA-26 Bannu for Anwar Saifullah.

So far, both parties have nominated candidates for four provincial assembly seats from Bannu, but have left open one constituency each without naming candidates. There also exists a possibility of seat adjustment on provincial assembly seats in Bannu.

PML-N has nominated Malik Nasir Khan from PK-70, Bannu-I, Dr Sahib Zaman for PK-72, Bannu-III, and Ahmad Mustafa Ali Khan for PK-73, Bannu-IV. The party is yet to decide on PK-71, Bannu-II.

Meanwhile, Fakhr-e-Azam Khan from PK-71, Bannu-II, Advocate Shoaib from PK-72, Bannu-III, and Pashtunyar Khan from PK-73, Bannu-IV have been nominated by the PPP, with the candidate for PK-70, Bannu-I, undecided as yet.

To overcome existing rifts in the party which have led workers to support either Zulfiqar Afghani or Azam Afridi in Peshawar, Anwar Saifullah Khan has also filed nomination papers from NA-1, Peshawar-I.

This will allow Khan to stand against the Awami National Party’s Ghulam Ahmad Bilour and Pakistan Tehreek-e-Insaf chief Imran Khan if the rift remains unresolved within PPP’s ranks in Peshawar.

PPP and PML-N’s manoeuvres will raise serious concerns for JUI-F as party chief Maulana Fazlur Rahman is himself a candidate from NA-27 Lakki Marwat, where he will be competing against Salim Saifullah Khan who will have PPP’s support.

The maulana will also be contesting against Faisal Karim Kundi, who beat him in the 2008 polls, in his native DI Khan. JUI-F provincial president Akram Khan Durrani, on the other hand, will be standing against PML-N backed Anwar Saifullah for the NA-26 Bannu seat. Durrani will also have to face Malik Nasir Khan, supported by PPP, in PK-70, Bannu-I.Published in The Express Tribune, March 31st, 2013.

British aid is 'helping fund re-election campaign of Bhutto family' in Pakistan

Britain is giving £300m of taxpayers’ money to a controversial programme of cash handouts in Pakistan which is accused of bankrolling the re-election campaign of Benazir Bhutto’s former party.

In evidence to a parliamentary inquiry, a leading development economist said the Benazir Income Support Programme was being used to buy support for Mrs Bhutto’s widower, President Asif Ali Zardari, and his party.

Ehtisham Ahmad, a visiting fellow at the London School of Economics, said Britain’s Department for International Development (DfID) was pouring money into a scheme riven by “clientelism”.

“It is not stolen to the extent to which previous cash transfers were stolen, but this is the mechanism - which is funded partly by DFID - to make friends and influence people. This is the re-election campaign of Mr Zardari, which is funded by DFID,” he said. “Well done.”

The Select Committee on International Development is due to publish its report into aid to Pakistan on Thursday.Britain has rapidly expanded its assistance in recent years. Pakistan is on course to become the biggest recipient of UK aid, receiving £450m per year by 2015.

SLAMABAD: The National Accountability Bureau (NAB) Thursday objected to the candidature of Nawaz Sharif and Shahbaz Sharif in the upcoming general elections over alleged scam of Hudaibiya Paper Mills, a senior NAB official told Dawn.Com.The Pakistan Muslim League-Nawaz (PML-N) Punjab president and the former chief minister, along with his brother PML-N chief Nawaz Sharif, are accused in the Rs3,486 million loan default case.

They have been accused of accumulating money and assets beyond their declared means of income by misusing authority. The case was filed with the Attock NAB Court on March 27, 2000.

Abbas Sharif, Hussain Nawaz, Hamza Shahbaz, Shamim Akhtar, Sabiha Abbas, Maryam Safdar and Ishaq Dar are other accused in the case.The bureau has conveyed its recommendations to the election commission in this regard.

Meanwhile, a spokesman of the PML-N has denied the allegations hurled at his party’s top leadership saying the details provided by the NAB are “misleading.”He said that “darlings” of the outgoing PPP government are still present among the bureau’s ranks, who he said are targeting the PML-N leaders. The spokesman said truth regarding these allegations will be soon unveiled in a press conference.

Reacting to the denial by the PML-N, the NAB official told Dawn.Com that the accountability bureau does not want to tarnish image of any public figure, adding that whatever details they have provided the ECP with is based on facts. It’s up to the election commission to decide the fate of any candidate regarding his/her eligibility to contest the polls, he added.

The NAB had set up election cells to help the election commission in the scrutiny of candidates for the May 11 elections. The decision to establish the cells was taken at a meeting held on Feb 20.

The meeting, presided over by Chief Election Commissioner (CEC) Fakharuddin G. Ebrahim, was attended by heads of NAB, Federal Bureau of Revenue (FBR), State Bank of Pakistan (SBP) and National Database Registration Authority (Nadra).

The meeting had decided that the ECP, with the help of relevant organisations, will identify tax-evaders, loan and utility bill defaulters and beneficiaries of written-off loans to prevent them from contesting polls.

KARACHI: An anti-corruption court issued non-bailable arrest warrants on Friday for senior Pakistan Peoples Party (PPP) leader Amin Fahim and the former director of NICL, Qasim Amin Dada, in the NICL Case.

During the hearing which took place in the Special Federal Anti-Corruption Court-II, Karachi, the court expressed its dissatisfaction over Fahim’s absence from the hearing.

Fahim’s lawyer submitted to the court an apology on behalf of his client, and said that the lawmaker was not present for the hearing because he was busy with parliamentary duties.

The court ordered authorities to ensure the presence of Fahim in the next hearing of the case and issued non-bailable warrants for the arrest of the PPP president and Qasim Dada.

The former federal minister was facing charges under Section 420 of the Pakistan Penal Code (PPC). Both accused had allegedly caused huge financial losses to the national exchequer by violating rules in the procurement of a piece of land in Korangi.

According to the original charge sheet, a total of Rs900 million was embezzled in the purchase of the land in question, with Rs41 million of this amount being transferred in the loan account of Fahim and members of his family in a private bank.

On the other hand, Sindh High Court ordered DIG and SSP South to submit a response by August 18, regarding the Hamza Ahmed murder case. Ahmed, a 17 year old O-level student was allegedly gunned down by the guard of another teenager, Mohammad Shoaib, on the night of April 27 in Defence Housing Authority. Talib Suhail, the father of the deceased, asked the court to resume court proceedings regarding his son’s murder.

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

"Investment in the shares of MCB has been one of my biggest business slip ups...........In hindsight, I should have never invested in this bank."

Mian Mohammad Mansha-Interview, daily, The Nation, April 28,1997.

Nawaz Sharif Came into power on November 6,1990, invited bids for the privatization of Muslim Commercial Bank (MCB) on December 15,1990 and announced its privatizaion to successful bidder, Messers Abdullah and others on January 9,1991.

Five bids were received for Muslim Commercail Bank with Tawakkals and Adamjee, being the highest and second highest bidders. Adamjee who formed a joint venture with Yunus Brothers, perhaps the biggest Export Houses in Pakistan, had incorporated Muslim Commercial Bank in 1949. As previous owner, they had the first right of purchase but, third lowest bid by Messers Abdullah and others, a consortium comprising of 12 leading industrialists, mostly from Punjab and headed by Mian Mohammad Mansha, was asked to match the highest bid and declared winner. The consortium which called itself the National Group comprised the following leading industrial groups and families:

1Mohammad AbdullahSaphire

2S.M.MuneerDin

3S.S.SaleemUniversal Leather and Footwear

4Mian Mohammad ManshaNishat

5Haji Bashir AhmadSitara

6Tariq RafiSadiqsons (United)

7Mohammad NaseemShafi Tanneries

8Mohammad ArshadArshad Textiles

9Sheikh Mukhtar AhmadIbrahim

10Saqib ElahiBe Be Jan Pakistan (Pvt) Ltd.

11Bashir Jan MohammadF and B Bulk Storage (Pvt) Ltd.

12Khawaja Mohammad JavedChakwal

At the press Conference called to announce the sale of MCB to the National Group, Finance Minister Sartaj Aziz said that two highest bids were rejected because the bidders had failed to disclose the source of their income. A press release distributed at the press conference claimed that the committee which scrutinized the five bids was guided by four major considerations namely 1) corporate and financial record of bidders, 2) capability of managing the bank on sound professional basis, 3) dispersal of share-holding to avoid concentration of ownership and control and 4) price offered on " as is where is" basis, without any condition.

Tawakkals filed a case in High Court but withdrew it under pressure from the Finance Ministry. In the subsequent privatization by Nawaz Sharif, Tawakkals succeeded in the privatization of three industrial units in such a dubious manner that Chairman, Privatization Commission came to be known as General Saeed Qadir Tawakkal, to rhyme like Abdul Qadir Tawakkal of Tawakkal group.

For nearly 30 months while Nawaz Sharif was in power, Bhutto and her party leaders ceaselessly attacked the privatization process, particularly privatization of MCB to Mian Mansha and his associates, as an act of favourtism and part of a game plan. Farooq Leghari, Finance Minister in the caretaker govt. of Prime Minister Moeen Qureshi, declared on the floor of the Senate on May 18,1993 that MCB was privatized as part of a grand design to grab some of the most profitable units slated for privatization.

" In the very first case of privatization of MCB, highest bidder who was the oringinal owner was also excluded. The third group got it. And I will tell you later, what happened to the third group and how they manipulated and used MCB for a host of other takeovers of the govt. corporate sector. It did not happen by coincidence. It happened by design", Leghari declared.

But all said and done, the story behind MCB's privatization has not been told and perhaps will never be told because those who could have done it, decided to make real capital after making political capital out of it. Once she came into power in 1993, Benazir developed amnesia about her pledge to investigate the privatization of MCB. However, MCB President Hussain Lawai, accompanied by Mian Mohammad Mansha held at least one meeting with Prime Minister's spouse Asif Zardari. Nobody knows what transpired in the meeting but within a week Mian Mansha went into forced exile, to return to Pakistan only after the ouster of Benazir in Nov 1996. It was also, only after the dissmissal of her govt. that collusion between Lawai and Asif Zardari, in several remunerative deals like award of gold monopoly to ARY Traders, loan to Sadaruddin Hashwani to facilitate the purchase of Occidental Petroleum and dubious UBL privatization to Basharahill became the public knowledge.

During first Benazir govt.(1988-90) Saddaruddin Hashwani had gone into forced exile, after a meeting with Asif Zardari amidst reports that he was under pressure to deliver Pakistan Services Ltd. operating the chain of Pearl Continental Hotels to a nominee of Asif Zardari.

While Mian Mansha was in exile, S M Munir, a member of National Group owning MCB and Chairman, Din group was appointed a federal minister. President MCB, Hussain Lawai was appointed an adviser to the Prime Minister.

" Mian Mansha can not be forgiven", a close aide to Prime Minister Nawaz Sharif, now a cabinet minister told a group of reporters in the National Assembly cafeteria, minutes after the new assembly had taken oath in Feb 1997. Mansha and his associates had wholeheartedly supported first Nawaz govt as is evident from the number of companies incorporated and listed on KSE, by Nishat and Chinioti communitiy. What went wrong between the " Lahore Maphia" and second Nawaz govt is a big mystery? But let us see how MCB was used to raid the State enterprises?

MCB was sold for Rs 2,420 against a down-payment of Rs 804 million. Within a year of privatization of MCB, Privatization Commission sold some of the most profitable cement plants to Mian Mansha, his relatives and business associates. Thus D G Khan Cement was sold to Tariq Saeed Saigol for Rs 1,799 million, Maple Leaf Cement to Nishat Mills for Rs 291 million, Pak Cement and White Cement for Rs 137 million and Rs 188 million respectively to Mian Jehangir Elahi and Associates. Dandot Cement was sold to the Chakwal group for Rs 254 million.

D G Khan Cement was acquired by Kohinoor Textile Mills (KTM) of Tariq Saeed Saigol by borrowing heavily from the bank, as is evident from the annual reports of KTM for 1992 which show no debt and 1993 which reveal heavy indebtedness.

Nishat Mills had assumed the management of Maple Leaf Cement on Jan 8, 1992 but within a few months of the sale D G Khan Cement by KTM to Mian Mansha, Maple Leaf Cement was sold by Mian Mansha to Tariq Saeed Saigol. KTM had also invested in the privatization of White Cement and Pak Cement but its investment was also divested in March 1992, in favour of Mian Mansha.

Dandot Cement was officially privatized to employees group but somehow it has become a part of Chakwal group, also closely related in business to Mian Mansha.

Thus it was through a complex intercorporate financing that Mian Mansha, his relatives and business associates ended up with five of eight privatized cement units which accounted for 45% to total industrial assets privatized by Nawaz Sharif. Within months of their privatization, cement prices catapulated in domestic market, forcing the govt. to order the dormant Monopoly Control Authority (MCA) to hold an inquiry into the possibility of cartelisation of cement. As was expected the inquiry absolved the privatized units of any wrong doing.

It was because of the assets acquired in privatization that Nishat group of Mian Mansha which was at the 15th position among the list of 43 top industrial families in Pakistan in 1972 and sixth in the ranking of the Monthly Herald in 1990 had risen to the top of the corporate world in 1993, by the time, Nawaz Sharif was dismissed on charges of corruption and other irregularities.

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

In a meeting with Financial Writers Association in Islamabad on April 16,1996, Asif Zardari regretted that bureaucracy had not allowed businessmen to grow in Pakistan and stunted their growth by heavy taxation, regulations and controls.

With Commerce Secretary, Salman Farooqi sitting on his right, he remarked " Our bureaucracy behaves as if it is criminal to make money" and went on to narrate how he had argued with Petroleum Secretary only the previous evening about the proposed sale of Burmah Castrol's share in PPL to Hashwani which was to become a major controversy involving Asif Zardari and his wife's govt.

Zardari was irritated by the argument of Ministry of Petroleum that Hashwani had his hands full and therefore, he should give up the idea of acquiring the company for which he had struck the deal but required a NO OBJECTION CERTIFICATE (NOC) from the Ministry. He was completely unmindful of the stories that in 1989 Hashwani had to flee the country because of pressure to transfer the management of Pakistan Services Ltd operating a chain of five-star hotels to a Zardari nominee or face prosecution for recovery of a Rs 120 million loans he got Zia-ul-Haq to write off.

Hashwanis are Khoja Ismaeelis from Gujrat in India who migrated to Karachi in 1890 where Hussain Hashwani, father of Sadaruddin Hashwani became partner in a company, representing Releigh Brothers, one of the leading buyers of cotton worldwide. In 1947, when the two Hindu partners departed, Hussain Hashwani incorporated Hassan Ali and Company, in the name of his eldest son. The three Hashwani brothers were reigning as the Cotton King when cotton export business was nationalized in 1972, by Z A Bhutto.

Sadaruddin Hashwani is SADRU to friends and a corporate raider and social climber to others. He had started as small time trader in 1960, became a big name in the 1970 and 1980's and was ranked 20th in June, 1990 list of Pakistan's super rich by Monthly Herald. During three years of Benazir govt, it emerged as one of the fastest growing group whose real value is difficult to assess and can only be guesed.

Nationalization was the turning point for Hashwanis who acquired Kotri Textile, New Jubilee Insurance adn PICIC interests of the Fancy family, another Ismaeeli conglomerate who, jilted by nationalization were planning to shift business to the Middle East. The nationalization of banks by Z A Bhutto turned out to be another blessing for Sadaruddin Hashwani because his name and social contacts gave him an advantage in extracting loans from the nationalized commercial banks. While all big business families were out to condemn the nationalization of banks, he was the lone voice singing sweet melodies in favour of nationalized commercial banks.

" No one should be allowed to open a private bank in Pakistan. I am sorry, I do not see any credit-worthy Pakistani that you can allow to open a bank and even take a deposit.......From my personal experience, I can say that I was victimized when banking was in private hands because of of the conflict of interest. Whenever I approached a bank whose directors were involved in trading, they would not finance me. As far as I am concerned that nationalization of banks was a blessing in disguise" he declared in an interview with the monthly Herald in Jan 1985.

As part of its tourism policy, Z A Bhutto govt declared hotel as an idustry for securing bank loans. Sadaruddin Hashwani who was also active in real estate decided to build a hotel on a piece of land that he owned in busy Sadar area in Karachi. He applied for for a loan and sought allotment of land in Islamabad for a 5-star hotel. Bhutto who had planned Asian Games in Islamabad went out of the way to sanction the loan.

The White Paper on Economy released in 1979 by Zia ul Haq accused Bhutto of sanctioning a loan to Hashwani Hotels despite objections by the Pakistan Banking Council that Hashwani brothers were already defaulting in an earlier loan from United Bank Ltd, in respect of another of their trading concern. But Bhutto decided that the UBL should not link up the default of the other concern of the sponsors with the underwriting of shares of Hashwani Hotels. A loanof Rs 19.8 million was sanctioned by Investment Corporation of Pakistan.

Few years later, it was Zia ul Haq govt that sanctioned a loan facilitating Sadaruddin Hashwani to purchase Pakistan Services Ltd. That catapulated him the top of the hotel industry in Pakistan.

In 1985, when PIA decided to sell its 51% shares in Pakistan Services Ltd operating Pearl Continental Hotels, Hashwani walked away with the spoils with financing obtained from ICP. It was this Rs 120 million loan which was written off by Zia ul Haq that landed him in trouble with Zardari in 1988-90.

Benazir had compaigned against the practice of rescheduling and writing off loans and promised to recover the amount but did nothing to recover the written off loans, once she came to power. However pressure was put on Sadaruddin Hashwani to hand over his hotels to a nominee of Asif Zardari. Hashwani has denied that but lived out the first Benazir govt, in exile, in Europe. He denies even that any loan against was ever written off. "There was a dispute about the rate of mark-up and the matter was resolved", he said in an interview with the author. He also discounted reports that he had gone into self-exile, claiming that he had gone to Europe because he was feeling depressed after the death of his mother, Zaver Hashwani in 1989.

Sometimes in 1990, Sadaruddin Hashwani incorporated Zaver Petroleum, after his mother's name. In September 1993 he blocked the sale of Burma Castrol shares in Pakistan Petroleum Ltd to Prmier Oil, by obtaining a stay-order from Baluchistan High Court against the deal.

The Petroleum Policy announced by Benazir govt in January 1994 was tailor-made for Zever Petroleum since it provided that in the event of discovery, local companies included in an exploration consortium will be provided an additional 2.5% share out of govt's working interests, provided they have invested a minimum of five percent during exploration. Zever Petroleum was the only Pakistani Company active in the oil and gas exploration business at the time.

On August 7,1994, Zever Petroleum announced it has acquired the entire capital stock of Occidental Pakistan Inc (OPI) which was producing an estimated 10,000 barrels per day of crude from Dharnol oilfield in Potohar. A report in the daily Dawn from its Washington correspondent said Occidental of USA did not disclose the price in the document it submitted to the United States Security and Exchange Authority.

According to a detailed report in weekly Takbeer, Karachi, January 23,1997, the acquisition of Occidental Petroleum which operates Pakistan's second biggest oilfield at Dharnol in Potohar was facilitated by Asif Zardari who arranged a package of four loans from the Habib Bank and United Bank. The story is corroborated by the fact that the defaulters list published by caretaker Prime Minister Meraj Khalid listed Pak Company of Tempa, Florida, a Hashoo group company to be defaulting in the payment of loans worth Rs 264 million.

For long, the Corporate Law Authority (CLA) has been asking Hashwani to convert Hashwani Hotels into a public limited company, as required by the 1984 Company Law. He balked at the move on the plea that he was involved in litigation with his brother Akbar Hashwani. However, despite the litigation, CLA cleared the deal between Zever Petroleum and Occidental based on the mortgage of his equity in Hashwani Hotels and other companies.

According to the article in weekly Takbeer, ten percent equity in Occidental Pakistan International is owned by Hashwani Hotels, 30% by Pakistan Services Ltd, adn balance by Zever Petroleum. Under the company law, approval of 51% shareholders of a listed company is required before an investment can be made in an associated company. At no annual general meeting, approval of shareholders of Pakistan Services Ltd was sought to invest in Occidental.

Like Mansha and his associates who made a chain of inter-corporate investment to acquire privatized cement units, Hashwani painstakingly invested and divested in associated companies to reach the present heights. The controversial ICP loan which facilitated the take over of PSL provided him the bedrock on which he started building his empire.

In 1990, PSL decided to invest 1.5 million pound sterling (Rs 60 million) in a foreign subsidy named Pearl Continental Overseas Ltd which in turn set up another wholly owned subsidy called Pearl Continental Inc. It was Pearl Continental Inc which acquired 75% shares in Pak Properties of Tempa operating 200-room Embassy Suites Boca, Raton, Florida. It was against this hotel in Florida that Hashwani negotiated a loan from United Bank to acquire Occidental Pakistan.

Meanwhile the PSL management has paid only three dividens to shareholders, 20% in 1986, 10% in 1990 and 15% in 1993, although huge amounts were transferred abroad and new assets acquired by pledging PSL shares. Money was also being siphoned off quite openly to other companies of Hashoo group.

For example, PSL is being managed by another group company, Hashoo Holding Ltd, which is being paid Rs 4 million as management fee. Rent-a-car service at Hashwani Hotels and PSL is being provided by Pearl Tours and even the mineral water is supplied by an in-house company.

Hashwani family business currently stands split in three groups namely 1) Hashoo group headed by Sadaruddin Hashwani, 2) Hashwani group of Akbar Ali Hashwani and 3) Hassan Ali Hashwani group which was mainly been put together by Sadaruddin Hashwani " for my sons" i.e. children of late Hassan Ali Hashwani. These three groups comprise at least 40 companies.

Hahsoo group named after great grandfather is the biggest of the three and comprise of 27 companies, of which only three are listed on the stock exchange. The major non-listed companies include Zever Petroleum, Hashwani Hotels, Occidental Pakistan Inc bought for at least 50 million dollars and two subsidiaries in Europe and USA.

Hashwani and PPL

A brief background of the controversy that surrounds Pakistan Petroleum Ltd is appropriate to give the perspective of what Hashwani was bidding for, and why Asif Zardari was keen to that the deal got the required NOC from the Ministry of Petroleum.

Birmah Castrol Oil of Britain owned 63% interest in PPL which was operating Pakistan's biggest Sui gas field. It also held 8.5% interest in the country's second biggest Qadirpur gas field. PPL itself owned 7% shares in the Qadirpur field. Since 1985, Burmah Castrol has been trying to divest its shares in PPL since and Pakistan govt had torpedoed two bids to sell its shares to Shell International in 1986 and to a consortium of Al-Barka of Saudi Arabia and Premier of UK in 1992, by refusing to issue the required NOC.

In 1992, when the fedral govt was inclined to issue the required NOC for deal between Burmah Castrol and Premier-Albarka, it was challanged by Hashoo group in Baluchistan High Court on the plea that such a strategic interest ought not to be sold to a foreing firm. The Court directed the Ministry of Petroleum to reconsider the whole issue after listening to the parties concerned. However, Burmah Castrol decided to withdraw its offer to Premier Oil and the matter came to a standstill.

Once Burmah-Premier deal was called off, Hashoo group approached Burmah for the said sale but without success because Burmah viewed Hashoo to be reponsible for scuttling its deal with Premier Oil. However in 1995, Hashwani succeeded in striking a trilateral deal, through an intermediary, BHP of Australia. This is how it happened.

Hashwani has claimed that BHP was interested in acquiring the equity in Qadirpur Gas Field and thus, it was agreed by BHP and Castrol that BHP would preferably find a Pakistani buyer for the PPL and therefore, it approached Sadaruddin Hashwani and an agreement was reached. The agreement envisaged that BHP will acquire Burmah Castrol and PPL share in Qadirpur gas field and Hashoo will have the PPL interest in Sui and other fields. Thanks to Asif Zardari and Minister for Petroleum and Natural Resources, Anwar Saifullah, the deal was approved by Ministry. But a hue and cry in press adn group of nationalist Pakistanis led by former Finance Minister Dr. Mubashar Hassan led to an intervention by President Farooq Leghari and cancellation of the deal.

The PPI deal was cited by President Farooq Leghari as an exemple of corruption of Benazir govt in both his dismissal order and later in the detailed document presented to the Supreme Court.

The trilateral deal between Hashoo, BHP and Burmah can be interpreted or read in many ways, but it can be best explained by reproducing President Leghari's comments in the reply to Banazir Bhutto's petition filed in the Supreme Court, against the dismissal of her govt.

" The conduct of Hashoo group, which enjoyed full support of petitioner's (Benazir) govt, was clearly malafide. A gas field whose intrinsic value runs into billions of dollars was being allowed to be passed on to Hashoo group and the shadowy individuals behind the group whose identity can be easily guessed. It (Hashoo) had opposed the deal between Burmah Castrol and Premier on the plea that natural gas reserves should not be allowed to pass into the hands of a foreign company, yet it sought NOC for the same deal without divulging the fact that two companies, one of them foreign (BHP) were proposing to take over the share"

For Asif Zardari, Anwar Saifullah, Hashwani and likes, it was an ordinary commercial deal between a buyer and a seller and therefore, the Governement of Pakistan ought not to have intervened in the deal. It appeared a valid argument, but those peddling this argument would have ended up reaping billions of dollars in windfall at the cost of the common man in Pakistan.

The following facts were unknown till Khaild Anwar, the present Law Minister appearing on behalf of President Farooq Leghari gave details of a 15-year old deal between Pakistan Government and Burmah Castrol.

Khalid Anwar said that intrinsic value of Sui Gas field was 6 billion dollars and under the trilateral deal between Burmah, BHP and Hashoo, Sadaruddin Hashwani was getting the management of PPL for 24 million dollars.

But why was the Burmah Castrol keen to divest ite equity in Pakistan Petroleum Ltd? he asked and went on to provide the answer himself.

According to the Khalid Anwar, Burmah Castrol was keen to find a buyer for its PPL shares because it was receiving a paltry return on equity held in the company which had been restricted to Rs 60 million per annum, under a Gas Purchase Agreement (GPA) signed between Pakistan Government and Burmah Castrol in 1982.

" This was one of the few agreements in which Pakistani bureaucrates succeeded to extract a good deal visa vis a multinational " Khalid Anwar said. An official of Ministry of Petroleum later told the author that the said GPA was a cost-plus agreement under which Burmah was allowed a repatriation of 25% return on its equity of Rs 240 million held in PPL.

Pakistan is already paying an unbearable price for the thermal policy of Benazir govt. If PPL deal was bulldozed through the Ministry of Petroleum and Natural Resources, it would have played havoc with gas prices, landing the people of Pakistan in the clutches of national and international Shylocks, because those negotiating the purchase of PPL had their eyes fixed on the year 2002 and beyond when the PPL ifrastructure will be used to store and market imported gas.

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

A chairman of the Federal Anti-Corruption Committee (FACC), late Malik Mohammad Qasim, at a press conference on Feb 9,1995, accused Nawaz Sharif govt. of arbitrarily fixing the reference prices of the privatized state units and ignoring those suggested by the evaluations. It was revealed that bids for a total amount of Rs 759 million were received for 16 Ghee Mills but they were sold for 636 million. The management of these units were handed over after a down of Rs 315 million, out of which Rs 137 were repaid as govt. share in Golden Handshake Scheme. The balance has not been paid to-date since the new owners have gone to court, on one pretext or another.

Sartaj Aziz defended the allegation in " The privatization of Ghee Mills, a rejoinder to FACC" released at a press conference. This is how he responded to the allegation that several state enterprises were sold at a price below those suggested by valuateors.

" No arbitrary fixation of price took place at all. The reason for any deviation from the figures worked out by the consultants have been explained in detail in review note of the valuation of each unit. The Privatization Commission, with approval of the Cabinet Committee on Privatization (CCOP) had agreed to adopt a uniform basis for the value of the goodwill in case of profitable units, as two years purchase of average profit, net of tax. Similarly in the case of loss-making units two years average losses net of tax credit were to be considered. Also a uniform rate of depreciation based on the normal tax depreciation rate was to be considered for depriciable fixed assets. These factors have been uniformally applied to arrive at the reference prices of all units offered for disinvestment without any exception".

The transparency in deciding the sale price is evident from the statement above which is not easy to comprehend. But the crux of what it said is " YES, WAYS WERE FOUND TO CHANGE THE REFERENCE PRICES FIXED BY THE EVALUATORS". Selling the units at a price far below the reference price was not limited to ghee units alone. At least half of the industrial units have been sold much below the reference price, on one ground or another.

B:-Schon Group

National Fibre was one of the most profitable public sector units whose profitability induced others like ICI to set up polyester fibre projects. In 1991-92 when the project was privatized it had an impressive balance sheet of paid up capital of Rs 423 million, annual sales of Rs 990 million and a profit of Rs177 million. It was sold on Feb 2, 1992 for Rs 756 million to Schon Group and delivered after a down-payment of Rs 302 million, which is still defaulting in payment of Rs 356 million for National Fibre.

In May 92, Pak-China Fertilizer was also sold to Schon group for Rs 456 million and handed over on a payment of Rs 182 million. A balance of Rs 240 million was outstanding against the group but no effort was made to recover it. Instead, Bhutto govt. approved the sale of Pak-Saudi Fertilizer to front-man for the Schon group but thanks largely to the alarm raised by the workers union and intervention by President Farooq Leghari the deal did not go through.

After taking over the management of National Fibre, Schon applied to the Corporate Law Authority (CLA) for the consent to issue shares in the stock market for Rs 35 per share because the company was poised to launch a major expansion programme of Rs 1,700 million. The permission was granted but Karachi Stock Exchange took the plea that the share was overpriced and therefore, the share price was reduced to Rs 26.50. The offer was oversubscribed but on Dec 30,1992 the annual general meeting of the company was called " to approve the management of surplus funds by Schon Management (Pvt.) Limited, an associate company of the group". Both National Fibre and Pak-China Fertilizer have been closed since their privatization.

Several cases were registered against members of the Schon group by the caretaker govt. of Meraj Khalid and second Nawaz govt. However, the chairman of the group Akhtar Hussain and his sons managed to escape and are currently living in exile in United States. Under an agreement whose details have not been revealed, despite questions in the Senate and National Assembly, shares of Schon Bank and real estate of Schon Bank have been auctioned by the Ehtasab Bureau for Rs 620 million. An additional amount of Rs 300 million was deposited by the group with the Ehtasab Bureau. Several other properties including two Rolls Royce cars, 12 aircrafts of Schon Air and a plot owned by the Schon Refinery are proposed to be auctioned in near future.

A report in daily, the News, Islamabad March 27, 1998 said that Ehtasab Bureau has released an amount of Rs 123 million to clear the outstanding payments to the workers of Pak-China fertilizer and that factory would soon resume operation. A clarification issued by the Ehtasab Bureau, as published in daily, The News, Islamabad two days later said that Bureau had also provided Rs 150 million to the Schon group to start the factory so that 600 factory workers can resume employment. It was not clear as to how Schon group was allowed to continue managing the factory while absconding from law. It was also not clear from the report, from which account Senator Saif-ur-Rehman of Ehtasab Bureau had released Rs 123 million for clearing the bills of Pak-China Fertilizer which for all practical purpose is a private company and not owned by the government.

C:-Sikandar Jatoi

Metropolitan Steel had an annual turnover of Rs 1,200 million and had undergone an expansion with an investment of Rs 200 million on the eve of its privatization in 1992. It was sold for Rs 66.67 million to Messers Sikandar Jatoi and handed over after a down payment of Rs 30.7 million. The Privatizaton Commission wrote out a checque of Rs 25 million to the new managenment as government contribution for Golden Handshake which means that Sikandar Jatoi walked away with Metropolitan Steel for a laughable Rs 5 million. Not a single payment has been made to the privatization comission since its privatization. Instead he moved Sindh High Court to claim a refund of Rs 100 million sales tax which the court upheld. The unit has remained closed since its privatization.

Sikandar Jatoi also bought Zeal Pak Cement on Oct 19,1992, for Rs 293 million and was handed over the unit, after a down payment of Rs 95 million. The Privatization Commission repaid Rs 56 million by way of government contribution in Golden Handshake. The units is closed since its privatization. Jatoi also played a key role in the dubious privatization of UBL and deposited the earnest money on behalf of succesful bidder Basharahil through a cheque drawn on Muslim Commercial Bank, courtesy its president Hussain Lawai.

D:-Tawakkals

Naya Daur Motors was evaluated at Rs 231 million and sold for Rs 69 million to Tawakkals but the bid price was revised downward to Rs 22.30 million and the new owner, thus walked away with spoils after a payment of Rs 15.69 million. It was on the basis of this unit that Tawakkals mobilised Rs 2 billion for Kia Motors from 4,000 people and are languishing in Jail. Tawakkals were also sold Baluchistan Wheels for Rs 270 million against which an amount of Rs 116 million is outstanding.

E:-Kot Addu Power Company

National Power of UK was selected strategic partner for Kot Addu Power Plant by accepting its bid for 26% shares for US$ 215 million. Messers CS First Boston which acted as financial advisor for the deal was paid a fee of US$ 13.132 million. The bid was reported to be unconditional when it was accepted but when Escrow Agreement was signed four conditions were incorporated. The total amount that was deposited in the Government of Pakistan account was US$ 163 million, resulting in the direct loss of US$ 51 million. Later, National Power was also sold additional 10% shares at a price of US$ 76 million against the approved price of US$ 82.7 million.

F:-OGDC privatization bid

In 1996-97, Oil and Gas Development Corporation produced 22,082 barrels per day (BPD) of oil, 474 MMCFD of gas, 167 tons per day of LPG and had an annual gross sale of Rs 11,595 million. It has nine drilling rigs, two work-over rigs, a Seismic Data Processing Centre and a host of related infrastructure facilities. Its privatization was advocated by Benazir govt. on the ground that it was constantly running into losses. The fact is that recruitment's were made in OGDC and irregularities were committed on such a scale that the government appeared to be in race to bankrupt it as early as possible. The irregularities in the award of LPG quota is just one case in point. Not only LPG was allocated to favorites for a song, no effort was made to recover the cost. It fell to the lot of the caretaker govt. to recover Rs 1,500 million from the LPG companies during its three month tenure.

G:-UBL privatization bid

In September 91, Chairman, Privatization Commission, Saeed Qadir has speculated in an interview with Sabih uddin Ghausi of Daily DAWN that UBL could fetch a price of Rs150 per share, against Rs 70 of ABL and Rs 54 of MCB but in 1996 it was sold to a dubious group for Rs 15 per share. Such a big fall in such a short time could happen only through a determined effort by the controllers of the bank to bankrupt it before its privatization. That a sustained effort was made by the govt. to bankrupt the bank before its privatization is also evident from the annual balance sheets of the bank.

UBL earned Rs 236 million profit in 1991, Rs 258 million in 1992 and Rs 275 in 1993 which went down to Rs 59 million in 1994 and gave a loss of Rs 720 million in 1995. During three years of Benazir govt. overdue advances jumped from Rs 12 billion to Rs 18 billion and 30 loans worth Rs 2 billion were rescheduled, scores of loans were written off.

In 1996 UBL had 3,000 ghost workers, Rs 700 million per annum was being spent on the union whose office bearers were in possession of 190 bank vehicles. The employees of the bank had extracted unrecoverable loans worth Rs 800 million. The bad loans amounted to Rs 17 billion (25% of all advances) and the bank was working with a net negative worth of Rs 12 billion. It was for this reason that Consultant Credit Lyonnais, Deloitte Touche Tohmatsu and Khalid Majid Hussan Shah Rehman had recommended " that the bank can not be sold without the govt. first pumping in at least Rs 15 billion to make it a viable operation."

Without taking into consideration the recommendation of Credit Lyonnais, the Privatization Commission decided to dispose of UBL on " As is, where is basis", and invited bids on Oct 6,1995. Eight bids were received. Six were rejected on the ground that the bidders did not have the required capital worth of Rs 1,500 million or were defaulting on loans. Surprisingly those who were disqualified included Saigols, Atlas-Bank of Tokyo and a consortium of Crescent and Dewan groups. The Crescent-Deewan joint bid was rejected on the ground that they were defaulting in the payment of a loan obligation.

After a charade of negotiations during which Chairman of the Privatization Commission made a pilgrimage to Saudi Arabia, the bid of dubious Basharahill was accepted at Rs 15.30 per share. However the deal had to be called off when it was found out that even the earnest money of Rs 300 million was made available by Muslim Commercial Bank and was deposited by Sikandar Jatoi.

H:-Pak-Saudi Fertilizer privatization bids

" Last year this project made a profit of Rs 1,094 million. Next year it could be all yours" proclaimed an advertisement in the newspapers inviting bids for the privatization of Pak-Saudi Fertilizer Limited, one of the most profitable State enterprises under the Ministry of Production. The unit was a gold mine, not just because of its profitability but because whoever owned the unit was in a position to strangulate three other units of National Fertilizer Corporation (NFC) namely Pak-American Fertilizer, Hazara Phosphate and National Fertilizer Company Jaranwala, Lyalpur (NFCL) because they supplied raw material to this company.

Both Nawaz and Benazir tried to sell Pak-Saudi Fertilizer to front man but the sales could not be carried out because of hue and cry raised by union and the press. When bids were invited first by Nawaz Sharif in 1991, two serious bidders emerged, both claiming to represent workers since Employees-Oversees Investors Buy-out was accepted by the government, although it did not meet the payment conditions of the Privatization Commission and sought to make the final payment by launching a modaraba. Advertisements in the national newspapers by PSFL union claimed that the real force behind the successful bidder was a friend of General Saeed Qadir, Chairman, Privatization Commission. The deal had to be called off.

During second Benazir govt. a UAE-based company was declared successful but it transpired that the company was a front for Schon Group which enjoyed cordial relations with Asif Zardari. The bid was aborted like previous one.

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

the biggest robbers in Pakistan are/were NAWAZ and BENAZIR . their sponsored media mikes like jang and geo group can rant all day that military rule destroyed this country , yet the fact is that BB and NAWAZ engaged in looting and pillage of this unfortunate country every single day of their rule . what was done under the military rule is peanuts compared to theirs

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!

A large number of Pakistan Peoples Party (PPP) workers and leaders had gathered outside the court and chanted slogans on the occasion of today's hearing.

At the onset of the hearing, party workers and members forced themselves into the court as a result of which the hearing was carried out in the judge’s chamber.

During the hearing, Gilani said that he was hopeful of receiving justice from the court.

The ex-premier said he and his party always respected the judiciary and would continue doing so in future.

The ACC granted bail to Gilani in 12 corruption cases until July 10. It, however, issued a bailable arrest warrant for former commerce minister Makhdoom Amin Fahim until July 10.

The former prime minister and Fahim are accused for their alleged involvement in a case pertaining to Rs7 billion corruption in the Trade Development Authority of Pakistan (TDAP). Gilani and Fahim, along with former and serving officials of the TDAP had been booked for their alleged involvement in approval and disbursement of fraudulent trade subsidies.

The case in this regard had been registered by the Federal Investigation Agency (FIA) when Faheem was the commerce minister.

Hakim Bey: Don't just survive while waiting for someone's revolution to clear your head
Napoleon Bonaparte: The world suffers a lot, not because of the violence of bad people, but because of the silence of good people!